The trade so far has been to fade political drama

But that doesn't mean it will be the trade going forward

One of the better trades over the past two months has been to buy USD/JPY and the S&P 500 when it hit a hiccup on political drama.

The dips after the first failure of Trumpcare and the firing of James Comey were erased in short order. Smaller dustups have been the same.

Is this time different?

Republicans are starting to distance themselves from the President, so that's new. The media is certainly in a feeding frenzy.

But ultimately, every scandal seems big until it passes. My guess is this rough patch will last a bit longer because Comey and some others are going to be testifying but, ultimately, it's not going to force Trump to quit or be impeached.

The trade has been to buy the dip and the best course of action is usually to stick with what's working.